Trust the Leaders Winter 2016

Trust the

Winter 2016

INTE THE RNAT IS IONAL a publication of smith, gambrell & russell, llp

SGRLAW.com

SUE

Hello, Havana?

The reality of U.S.-Cuba business opportunities

Trust the Winter 2016

3 Editor’s Letter 4 Legal Briefs The latest news and views from the offices of Smith, Gambrell & Russell.

Smith,Gambrell

&Russell, llp Attorneys at Law

8 Opening the Door to Business Between the U.S. and Cuba How the loosening of longstanding travel and trade restrictions could herald a new era of business.

13 “Cape Town” Comes to the UK

1230 Peachtree Street, N.E. Promenade, Suite 3100 Atlanta, GA 30309-3592 editor@sgrlaw.com

editor-in-chief

Dana Richens

What the UK’s recent adoption of this key aviation treaty means for the industry.

16 Intracompany Transfers The legal process of moving key personnel in and out of the United States.

18 Israel and Innovation How such a tiny nation has become a technological and entrepreneurial powerhouse.

22 Foreign Manufacturers We explore the legal challenges facing foreign companies that sell, install and repair industrial machinery in the United States.

26 Finish Line

editorial advisory board

Peter Goodman Joyce Klemmer Brett Lockwood Jim Monacell sgr marketing team

Lee Watts Ashley Berry Sabina Farman Claire Lawther Hank Sforzini Mollie Werner Trust the Leaders is published on behalf of Smith, Gambrell & Russell, LLP by Fourth Element Creative.

The information contained herein has been obtained from sources believed to be reliable.

SGR’s partnership with Cristo Rey Atlanta Jesuit High School.

The content and information in this publication do not constitute legal advice, do not in all cases reflect the opinions of SGR or its attorneys and are not in all cases complete or current as of the publication date. This publication is not intended to and does not create an attorneyclient relationship or provide legal advice or legal opinion. Legal advice should be obtained from one’s legal counsel.

Permission is granted to use and reproduce this publication in whole or in part for internal and personal reference, provided that proper

This issue’s cover Jamie Maciuszek is an Atlanta-based fine art photographer whose works have been displayed at a wide variety of venues and in private collections, including the Hartsfield-Jackson Atlanta International Airport and the TULA gallery.

His travels to Cuba, and the spirit of the Cuban people, have provided some of his greatest artistic inspiration, and many of his most powerful images.

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

attribution of authorship is given. Except for material in the public domain, this publication may not be further copied, modified, used or distributed, in whole or in part, in any form or by any means without the written permission of Smith, Gambrell & Russell, LLP. All other rights expressly reserved. © 2016 Smith, Gambrell & Russell, LLP. Leaders used with permission of Leaders Magazine, Inc.

Editor’s Letter

Editor’s Letter

IN THIS ISSUE

Happy New Year! And welcome to this special “International” issue of Trust the Leaders.

SGR’s International Practice principally involves “inbound” U.S.

John Spillman p.8

work – that is, the representation of foreign-based companies

John examines the prospect of a renewed business relationship between the United States and Cuba.

looking to establish and maintain manufacturing, sales and related operations in the United States. We also represent U.S. clients who want to expand their business abroad.

As you might imagine, a foreign-based company’s expansion into the U.S. brings with it a host of complex business and legal issues on which we counsel our clients: • Government incentives and site selection

Marc Latman & Rob Fuessler p.13 The authors assess what the UK’s adoption of the “Cape Town” treaty means for the international aviation industry.

• Financing, real estate and construction matters • Operational structure • Immigration and employment matters • Export/import issues • Federal and state taxation • U.S. patent, trademark and copyright protection We also frequently serve as general counsel to the U.S. entity once it is up and running. Our

Romy Kapoor p.16 Romy highlights the immigration options available to companies moving key personnel in and out of the United States.

clients range from small family-owned German Mittelstand companies to multi-national corporations in the automotive, infrastructure, renewable energy, steel and building materials, food and medical equipment, and software and computer technology industries, among others.

Our attorneys include a number of native Germans who are licensed both in Germany and the U.S. Our international language and other capabilities have enabled us to represent clients from Germany, Israel, Finland, Korea, the United Kingdom and other nations around the world.

Jonathan Minnen & Greg Kirsch p.18 Jonathan and Greg describe how Israel has become a world leader in the fields of research and development, and technology.

We hope that the articles in this issue give you a feel for the wide range of services our firm offers to our clients looking to expand internationally. Enjoy!

Michael Kraus & Vickie Chung p.22

Dana Richens

Michael and Vickie explain the legal complexities facing foreign companies selling industrial machinery in the U.S.

Editor-In-Chief editor@sgrlaw.com

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LEGAL BRIEFS

THE LATEST NEWS AND UPDATES FROM THE SGR OFFICES

ATTORNEYS IN THE NEWS

MAJESTIC PURCHASE

Talkin’ ‘Bout My Generation SGR’s Nick Rueter provided the millennials’ viewpoint during a panel on intergenerational issues cosponsored by SGR and the Emory Black Law Students Association. Also pictured (from left to right) are panelists DeKalb County Magistrate Judge Nora Polk, Beckysteinphotography.com

CNN Legal Analyst Joey Jackson and Atlanta Municipal Court Judge Terrinee Gundy, and Georgia State University law professor Tanya Washington, the moderator. This is the eighth year of the SGR/Emory BLSA Lecture Series.

Jim Monacell has been

Dana Bradford was

Marcie Ernst was

named vice president of

inducted as a Fellow in

recently appointed by the

the Association County

the American College of

National President of Phi

Commissioners of

Trial Lawyers at its annual

Mu Fraternity to serve as

Georgia Civic Affairs Foundation,

meeting on October 3 in Chicago. A

a member of the Phi Mu National

which fosters understanding and

partner in SGR’s Jacksonville office,

Harm Reduction & Prevention

involvement with county government

Dana handles commercial litigation

Committee, which is part of Phi Mu’s

through student internship and

of all types, including class actions,

National Leadership and Curriculum

youth civic awareness programs, as

insurance matters and accident and

Development Department. Phi Mu

well as a grade-school “U R Y We’re

products liability defense, including

was founded in 1852 at Wesleyan

Here” civic education program.

toxic exposure claims.

College in Macon, Georgia.

SGR SUSTAINABILITY FOCUS Led by Steve O’Day, SGR’s Sustainability Practice provides legal assistance to Cox Enterprises, Inc. in implementing its award-winning Cox Conserves sustainability initiative nationwide. SGR assisted

04

with the implementation of Cox’s scrap tire minimization program, acquisition of waste minimization technology, a waste-to-energy project, implementation of electricity demand response programs, solar energy procurement, marketing of

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

solar renewable energy credits, and development and construction of three solar energy projects. Legal services were provided by attorneys in SGR’s Environmental, Corporate, Construction and Intellectual Property sections.

SGR recently assisted Atlanta-based Majestic Realty Co. with the acquisition of 155 acres of undeveloped land in Polk County, Florida.

Our client’s acquisition consisted of assembling eight different parcels of land from eight separate sellers and included negotiating multiple easements for offsite rights to facilitate the development.

The project entails construction of two separate warehouses, each of approximately 1.2 million square feet for Walmart.

Financing is provided by Northwestern Mutual Life Insurance Company.

Mac Young, a partner in SGR’s Commercial Real Estate Practice, represented Majestic in the acquisition, assisted by paralegal Julie Bryant.

IP INSIGHTS Scott Woldow, a partner in SGR’s

Resolution (ADR) Committee. The ADR

Trademark Practice in the Washington,

Committee is responsible for promoting and

DC office, presented at a mini-seminar

raising awareness of the benefits of ADR,

on Hot Topics in Trademark

including overseeing a global panel of trademark

Prosecution hosted by the International

mediators. The Committee also works closely

Trademark Association (INTA) and the United

with INTA’s In-House Practitioners Committee to

States Patent & Trademark Office (USPTO).

offer programs for in-house needs.

The audience included senior officials of the USPTO.

Jim Bikoff has been reappointed to

Scott has also been appointed to INTA’s

INTA’s Internet Committee and will

Government Officials Education and Training

chair the Whois and Privacy Issues

Committee. This Committee develops

Subcommittee during the 2016-17

educational programs specifically designed

term. Jim also has been appointed chair of the

for government officials and intellectual

ABA Committee on Trademark Litigation for the

property office employees. The Committee’s

2016-17 term.

responsibilities include content development, identification of speakers and moderators,

Darlene Klinksieck has been

course material development and review, and

appointed to INTA’s Non-Traditional

program implementation.

Marks Committee. The mission of this Committee is to evaluate treaties,

Marsha Ajhar, counsel in the Firm’s

laws, regulations and procedures relating to

Intellectual Property Practice, recently

the protection of non-traditional trademarks

began her second term as president

(NTMs), such as sound, color and trade dress,

of the International Intellectual

and to develop and advocate policies to advance

Property Society (IIPS).

balanced protection for NTMs.

Three SGR IP partners – Jim Bikoff,

Rich Rivera has been appointed to

Ed Pennington and Greg Kirsch –

the INTA Bulletin Committee. The

presented on various IP topics at a

Bulletin Committee generates and

seminar organized by the Bavarian

coordinates relevant articles and

Industry Association (Vereinigung der

news reports, with global coverage, for each

Bayerischen Wirtschaft, or VBW) in

newsletter. The Bulletin is circulated to over

Munich. The VBW is a Bavarian trade

30,000 trademark professionals in over 190

group that represents the interests of

countries.

Bavarian industry and provides support through its programs and services.

Joyce Klemmer is a member of the

SGR corporate partner Jim Black

INTA Panel of Trademark Mediators.

helped organize the seminar.

The Panel is an important resource that INTA makes available to those seeking a neutral to assist in resolving trademark

SGR attorneys continue to serve in leadership roles of INTA: Elizabeth Borland has been appointed to INTA’s Alternative Dispute

and related intellectual property disputes. The Panel consists of INTA members with substantial substantive knowledge of and experience with trademark, as well as training and experience in the skills necessary to mediate disputes.

SGR IN THE COMMUNITY Lewis expands her special needs outreach Kristen Lewis is the new chairman of the board of Georgia Community Support & Solutions (GCSS), which serves persons with disabilities and their families. As a board member of All About Developmental Disabilities (AADD), Kristen also facilitated court approval of the newly branded Georgia Community Trust of AADD, the only Georgia-based “pooled” special needs trust.

Kristen continues her monthly special needs planning workshops for the families served by AADD and GCSS, and started a similar workshop series for Cumberland Academy of Georgia, a private school for children with autism.

Kristen also continues to educate allied professionals about special needs planning. She recently presented at the annual meeting of the Georgia Society of CPAs at Reynolds Plantation, and lectured on special needs trust administration at the American Bankers Association Advanced Graduate Trust School for trust officers at Emory University.

Kristen created and participated in a new program for the Atlanta Estate Planning Council on “Dealing With the Family Dysfunction Dynamic.”

She also presented on elder financial abuse at the American College of Trust and Estate Counsel annual regional meeting at The Greenbrier, followed by similar presentations at the October meeting of the Financial Planning Association of Georgia, and for the Georgia Institute of Continuing Legal Education program in November.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

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LEGAL BRIEFS THE LATEST NEWS FROM THE SGR OFFICES

ATTORNEYS IN THE NEWS Joyce Klemmer was

Roy Kozupsky, head

SGR labor and

the moderator for the

of SGR’s NYC Private

employment law partner

Atlanta Bar IP Section’s

Client Services Group,

Matt Clarke’s article entitled, “If It Walks Like

has spearheaded an

Nov. 17 CLE luncheon entitled “IP Litigation Management

initiative to start a separate practice

a Duck, and Quacks Like a Duck –

from the Inside: In-House Counsel

group that will focus on serving

Are Your Independent Contractors

Best Practices and Insight.”

families whose financial and human

Really Your Employees?” appeared

capital is closely linked to a family

in the December 2015 edition of

Senior Counsel, The Coca-Cola

enterprise. Trusts & Estates magazine

The Consultant magazine, published

Company; Komal Patel, Assistant

published in its September 2015

by the Association of Consulting

General Counsel, The Home Depot;

issue an article that Roy co-authored,

Foresters.

and Brian Decker, Senior Legal

entitled “Inside-Out Succession:

Counsel, Newell Rubbermaid.

Rethinking Estate Planning for Family

conducted a seminar on employee

Businesses.” Roy recently spoke

handbooks for the Northeast Georgia

Intellectual Property Practice, where

at the Certified Financial Advisor

Chapter of the Society of Human

she focuses on IP litigation. In

Society of Philadelphia High Net

Resources Management (SHRM).

addition, she presently serves on the

Worth Family Wealth Conference.

The seminar covered recent changes

board of the Atlanta Bar Intellectual

Roy also lectures at the Graziadio

to FMLA regulations, NLRB rulings

Property Section and is a past chair

School of Business and Management

and other suggestions for updating

of the Georgia Bar’s IP Section.

at Pepperdine University.

employee handbooks.

On the panel were Allen Yee,

Joyce is a partner in SGR’s

Regan educates in New York City Michael Regan, a litigation partner in SGR’s New York office, spoke at a continuing legal education program at the New York City Bar Association, entitled “The Art of Pleading: Tactics, Techniques and Strategies.” Michael was joined by The Honorable Jeffrey K. Oing of the Commercial Division of the New York Supreme Court, and The Honorable Vera M. Scanlon, United States Magistrate Judge presiding in the United States District Court, Eastern District of New York.

Michael’s presentation focused on the preparation of effective pleadings in litigation matters, pitfalls lawyers should avoid, new rule changes affecting litigants in the Commercial Division of New York Supreme Court, and contrasts between state and federal court practice.

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

In addition, Matt recently

NEW PARTNER PROFILE Joe Mandarino is a new partner in SGR’s Tax Practice.

He is a frequent speaker on a variety of topics. Joe’s most recent seminars include: O Partnership Tax: Allocations and Capital Accounts, CPA Academy.

O Pass-Through Entities, Self-Employment Taxes, and the Net Investment Income Tax, CPA Academy.

O Correcting Capital Account Errors on Partnership Returns, Strafford.

O Selling Your Interest in a Partnership or LLC, CPA Academy.

O Handling the Sale of a Business: Tax Saving Structures and Strategies for Attorneys, NBI. O Mastering Tax Issues in the Sale of Partnership and LLC Interests, Strafford.

Joe works with attorneys, accountants, advisors and business owners to maximize tax efficiencies.

For more information, contact: jmandarino@ sgrlaw.com.

ATTORNEY INTERVIEW

SGR IN THE COMMUNITY

10 minutes with…

Legal Aid Society Relocation

Melissa Dearing

SGR is proud to have played a part in Atlanta Legal Aid Society’s relocation to its new headquarters in downtown

Partner in SGR’s Immigration Practice, Jacksonville Melissa’s practice encompasses all areas of labor and employment law. She also assists employers in seeking non-immigrant and immigrant status. She has extensive experience with H-1Bs and the PERM-based green card process, particularly with respect to information technology professionals, engineers and pharmacists, among other professionals.

Melissa earned her B.A. degree, with honors, from the University of Florida. She earned her J.D. degree, with honors, from the University of Florida Levin College of Law. Are you originally from Florida?

Yes, I was born and raised in Tampa. I love Florida. I can’t imagine living anywhere else.

How did you know you wanted to go to law school?

In college, I had a dual major of Political Science and Criminal Justice. My father was in law enforcement, so the criminal aspect of it was always fascinating. That was my initial introduction to wanting to practice law.

I wanted to be a criminal defense attorney.

I clerked at the public defender’s office and figured out quickly that it didn’t attract me. I took some employment law courses and that really captivated me.

How did you transition into immigration law?

I enjoyed employment defense work – the different fact patterns were always very intriguing. Then a partner at my previous law firm moved to an in-house role at one of his clients and suggested I take over his immigration practice. Initially, I didn’t think I would be interested; it seemed too forms-based.

But I quickly came to realize how complex it is and how satisfying it is to make dreams come true for our foreign-national clients.

Atlanta in 2015. SGR’s name partner E. Smythe Gambrell founded Atlanta Legal Aid in 1924 and served as its

What is the most rewarding case that you have handled?

It was for the family of a Haitian man who was working in the U.S. at McDonald’s. The children were in Haiti and the parents had come here to earn money to send back to Haiti. The father’s ultimate dream was to have his children come here, too. Tragically, the father was later shot and killed. We assisted his entire family in coming to the United States. They all now have legal permanent status. The oldest son is currently in college. While the father never got to enjoy seeing them here, making a family’s dream come true was amazing.

president for almost two decades.

Building on Mr. Gambrell’s legacy, SGR partner David Burge provided commercial real estate services for the renovation/relocation project on a pro bono basis, and SGR’s Managing Partner Steve Forte and partner Parker Sanders served on the Capital Campaign Committee. The Gambrell Conference Room at the new headquarters recognizes Mr. Gambrell’s special contributions and the firm’s financial and other support of Atlanta Legal Aid.

What is the best career advice you have received?

To always be extraordinarily responsive to your clients. I think that is one my best attributes and sets me apart from lawyers at other firms.

I try to make myself available to my clients regardless of the circumstance, whether it’s late in the evenings, on the weekend or otherwise.

What do you like to do outside of work?

I’m a recreational runner. I also love spending time with my family. I have a husband and three kids. I do all I can to spend time with them.

Are there any special causes or organizations that are important to you?

My son is autistic, so Autism Speaks and similar organizations are important to us. They do a lot to further the cause for autistic children. I would like to become even more involved in the future.

What do you enjoy most about working at SGR? We have a very collegial atmosphere. A number of colleagues moved from my prior law firm to SGR, so, it’s nice having that familiarity while also getting to know some of the other lawyers who have been at SGR for a longer time.

Congratulations to the following SGR lawyers recently elected to the partnership: Eugene Bryant (Atlanta) James Cummings (Jacksonville) Michael Regan (New York) Julie Sebastian (Atlanta) John Weeks (Atlanta)

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

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OPENING THE DOOR TO BUSINESS

BETWEEN THE U.S. AND CUBA While the prospect of a renewed trading relationship between the two nations appears promising, the future is far from certain

BY JOHN SPILLMAN

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TRUST THE LEADERS | Winter 2014 | SGRLAW.com

U.S. and Cuba

I

n December 2014, President Obama and Cuba’s president, Raul Castro, made surprise and simultaneous announcements that, after a half-century of mutual hostility,

the two countries would move toward reestablishing normal relations. The United States also announced the loosening of some of the longstanding Cuban trade and travel restrictions.

These developments have generated excitement and media buzz about opportunities in Cuba for U.S. business. While the changes are real and future prospects are interesting, the U.S. trade embargo remains in place and prohibits most business dealings with Cuba, and the Cuban government’s willingness to accommodate large-scale U.S. investment is still uncertain.

A full opening of trade and business relations between the U.S. and Cuba will take time. In

severe problems on many fronts. The state-

the meantime, there are niche opportunities

controlled economy is stagnant and lacks

for some U.S. businesses and a much-improved

foreign exchange to pay for critical imports.

climate for visiting the island, investigating the

Cuba’s infrastructure is crumbling. The economy

market and developing relationships.

offers few opportunities for its well-educated young people. Cuba’s most important ally

Background

and benefactor, Venezuela, is facing its own

Cuba is an island nation with 11 million people

economic crisis and cannot sustain the subsidies

located 90 miles off Florida’s coast. It has a rich

it has provided since the late 1990s. Cuba

history as a cosmopolitan trading capital of the

needs more tourism and foreign investment to

Spanish empire in the Americas. After Cuba’s

reinvigorate its economy and generate growth.

independence following the Spanish-American

Despite the Cuban government’s denunciation

War in 1898, the U.S. strongly influenced Cuba’s

of the U.S. for the last half-century as a

economy, politics and culture. In 1959, Fidel

malignant imperialist, it understands that U.S.

Castro led a revolution overthrowing the corrupt

trade and investment can play an important role

Batista dictatorship. One of Castro’s goals was

in revitalizing the Cuban economy.

to limit U.S. influence over Cuban affairs. In

There have also been changes in the U.S.

1961, Castro embraced communism, aligned

political climate with respect to its Cuba policy.

Cuba with the Soviet Union and expropriated

President Obama is in his second term and

U.S.-owned assets. In response, the U.S. broke

can afford to be less concerned with political

diplomatic relations, sponsored the failed Bay

repercussions from improving relations.

of Pigs invasion to oust Castro, and imposed

Opposition to an opening by the politically

severe trade and travel restrictions that have

influential Cuban-American community has

remained in effect for 54 years. The long

weakened due to generational and demographic

break in diplomatic relations finally ended this

changes. Major U.S. business interests are

summer when the two countries reopened their

lobbying more aggressively to open trade with

respective embassies.

Cuba. Policy experts and interest groups have become more vocal in arguing that the existing

Why are relations improving?

policy has accomplished little to weaken the

Developments in both countries set the stage

Cuban government or change its policies while

for improved relations. Cuba’s leaders face

placing a heavy burden on the Cuban people.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

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U.S. and Cuba

What business activities are allowed?

For years, the embargo statute has permitted limited categories of U.S. exports to Cuba under special license, mainly food and medicine (most of Cuba’s chicken comes from Georgia, for example), which is usually sold to various arms of the Cuban government.

There are strings attached to these licensed sales that put U.S. companies at a competitive disadvantage, including a prohibition on extending credit and restrictions on marketing activities. U.S. agricultural sales to Cuba have

Photos by John Spillman

been declining in recent years as other countries have gained market share. U.S. agricultural interests have been active in lobbying for a repeal of the embargo.

In January 2015, shortly after the announcement of the U.S.-Cuba opening, the Obama administration issued new administrative

Why the interest in doing business with Cuba?

U.S. businesses are interested in Cuba for several reasons, including Cuba’s proximity to the U.S.; its history as a sophisticated trade hub for Latin America and the Caribbean; a well-educated, traditionally entrepreneurial population; infrastructure in need of major overhauls;

Cuba has been walled off from U.S. travel, trade and investment for so long that it has piqued an interest in the U.S. that may exceed its realistic market potential.

regulations for enforcement of the Cuba embargo by the Office of Foreign Asset Control and the Department of Commerce.

An additional set of regulatory changes was announced in September 2015.

Together, these changes significantly expand opportunities for travel, commerce and investment between the U.S. and Cuba within

relationships with a thriving Cuban expatriate

the tight constraints of the embargo. The

network; miles of undeveloped beaches,

stated purpose of the regulatory changes is to

pleasant climate, beautiful architecture and

individuals from doing meaningful business in

“empower and engage the Cuban people.” As

other tourist attractions; and pent-up consumer

Cuba. The embargo, which Cubans refer to as

a practical matter, the changes are also intended

demand in its internal market. Businesses see

the “blockade,” is enshrined in a law passed by

to further support for repeal of the embargo

obvious opportunities in tourism, manufacturing

Congress and will remain in force until Congress

and put pressure on the Cuban government to

and agriculture, and in less-obvious sectors such

repeals it.

liberalize its internal policies.

as call centers, distribution and logistics, health,

Despite strong lobbying from U.S. business

Under the revised regulations, U.S. businesses are permitted to engage in the following activities:

IT and outsourced research and development.

and polls showing public support for lifting

Finally, there is the “forbidden fruit” factor:

the embargo, repeal is unlikely until after the

Cuba is so close, and has been walled off from

2016 U.S. presidential election. It will remain

U.S. travel, trade and investment for so long,

a contentious political issue even after the

that it has piqued an interest in the U.S. that

election. President Obama’s loosening of

equipment, and related hardware, software

may exceed its realistic market potential.

certain embargo regulations was intended

and services. Unlike most of the other

• Sales of certain telecommunications

to create political momentum for repeal by

permitted activities, this exemption specifically

Despite the hype, the U.S. trade embargo on Cuba remains in place

encouraging more travel and business activity

authorizes sales to, and joint ventures with,

within existing statutory exemptions. However,

Cuban government-controlled enterprises.

Despite President Obama’s easing of some

no one can predict how long the embargo will

Roaming agreements between U.S. mobile

Cuban trade and travel restrictions, the U.S.

remain in place. Until the embargo is repealed,

networks and the Cuban national carrier are

trade embargo on Cuba remains firmly in

business opportunities in Cuba for most U.S.

expressly permitted. Verizon recently announced

place and prohibits most U.S. companies and

companies and individuals will be limited.

expensive but available voice and data roaming

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

in Cuba for its U.S. customers, and other U.S. carriers are sure to follow.

• Sales of certain Internet-based services, including software design, business consulting, IT management and related services, including services relating to instant messaging, chat, email and social networking. Airbnb and Netflix have begun offering services in Cuba under these exemptions. The importation of mobile applications developed in Cuba is also permitted in some cases.

• Exports of items for use by the small but rapidly growing Cuban private sector, including building materials, tools and supplies and certain microfinance activities.

• Certain activities related to commercial aviation, passenger ferries and other travelrelated services.

• Renting Cuban facilities, hiring Cuban employees, registering local subsidiaries and engaging in a variety of other activities, but only when they are incidental to some of the primary business activities permitted under the regulations.

The new regulations made significant changes in the following areas: Travel. Prior to 2015, travelers to Cuba had to apply for a license before the trip. Applications were approved only if travel was for one of the limited purposes permitted under the embargo, including family visits, professional research and meetings, support for the Cuban people and travel in connection with authorized export activities. Under the new regulations, licensing for permitted travel was effectively converted to an honor system – advance permission is not required. U.S. businesspeople who want to visit Cuba to evaluate the market and meet potential business contacts can generally do so within the permitted travel categories and without having to apply for a license. the two countries announced an agreement to resume direct commercial flights from the U.S. to Cuba, which should make travel to the island easier and less expensive than the current charter services.

Photos by Jamie Maciuszek

Editor’s note: As this article went to press,

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

11

U.S. and Cuba

Banking, credit cards and remittances.

The new regulations permit U.S. banks to set up correspondent relationships with Cuban banks to facilitate authorized transactions and allow U.S. credit card issuers to process payments made by U.S. travelers in Cuba. U.S. persons may open bank accounts in Cuba to facilitate also allow U.S. banks and money transmitters to facilitate permitted remittances from the U.S. to Cuba. Remittances from relatives in the U.S. are an important source of shadow finance for the growing Cuban private sector

Photo by John Spillman

certain permitted activities there. The regulations

and private real estate markets. The most recent changes eliminated the $2,000 quarterly limit on remittances to most Cuban nationals.

Intellectual Property. Under current law, U.S. companies can register intellectual property in Cuba and pay the registration and professional

New regulations leave questions unanswered and create gray areas that will need to be clarified.

through joint ventures in the tourism and natural resource sectors. Potential investors will nevertheless have concerns about the implementation of the new foreign investment laws, including the efficiency of government permitting and regulation, the practical ability

fees relating to the registrations. Cuba is a “first

to enforce contracts, repatriation of profits,

to file” trademark jurisdiction, so businesses with an interest in the market should consider

experimenting with larger-scale privatizations

requirements that all employees must be hired

registering their marks to prevent squatters or

through cooperative ownership. Cubans are

through the government, and transferability of

others from appropriating them in Cuba.

now allowed to travel freely and to buy and sell

investments. Investors will also be mindful that

homes and cars. While Internet access is still

the government could reverse course on reform

and laws relating to U.S.-Cuba business

limited, the government tolerates widespread

if internal politics change.

remains complicated. The new regulations leave

black-market distribution of news, television,

questions unanswered and create gray areas

sports and films from the U.S. and Latin

Takeaways

that will need to be clarified. Some changes will

American countries via portable media.

The door has cracked open to business

have limited practical effect without changes in

Despite the reforms, Cuba remains a

The interplay among the various regulations

between the U.S. and Cuba. There appears

Cuban government policy. Until the embargo

communist country with a centrally planned

to be strong momentum toward an eventual

is repealed, U.S. businesses will need to read

economy, an ideological hostility to market

repeal of the longstanding embargo. Until

the regulations carefully and check with their

capitalism and a deep suspicion of foreign

that happens, opportunities will be limited

legal advisors before engaging in any business

economic influence. Ninety percent of Cubans

to the permitted niche areas. Some of these

activities relating to Cuba.

with jobs work for the state or state-owned

are potentially significant, especially in sectors

enterprises. While the government recognizes

related to telecom, Internet and ecommerce,

Is Cuba ready for U.S. business?

the need to liberalize parts of the economy and

and transportation. For businesses interested

The Cuban government has made significant

open it to foreign investment, it has limited

in current or future opportunities in the Cuban

moves in recent years to encourage foreign

practical experience with market economics.

market, it has become much easier to travel to

investment, including an overhaul of its foreign

The government appears determined to

Cuba, arrange meetings, investigate the market

investment laws and an ambitious free trade

remain firmly in control as the reform process

and protect IP for future use. Q

zone development at the port of Mariel, with

unfolds. Even if the encouragement of foreign

the ability to handle the giant cargo ships that

investment is sincere, the opaque, top-down

will be passing through the newly widened

Cuban bureaucracy is likely to make practical

Panama Canal beginning next year. Many areas

implementation of some reforms difficult.

of the economy have been opened to smallscale private enterprise and the government is

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

Non-U.S. foreign companies have operated in Cuba on a limited basis for years, mainly

John Spillman is a partner in SGR’s Corporate Practice. He counsels on corporate and transactional matters, including mergers and acquisitions, joint ventures, emerging company issues and international transactions. jspillman@sgrlaw.com.

Aviation Law

“CAPE TOWN” COMES TO THE UNITED KINGDOM The treaty on recognition of rights in aviation assets assumes a greater level of significance with the UK’s recent ratification

I

nitially implemented in eight countries

understanding of some of its more complicated

nine years ago, the international treaty on

and country-specific features remains critical

recognition of rights in airframes, aircraft

for all parties involved in the structuring,

engines and helicopters, informally known

documentation and negotiation of aviation-

as “Cape Town,” has now been implemented

BY MARC LATMAN

BY ROB FUESSLER

related transactions.

in almost 70 countries. The treaty is set to take on even greater significance in the world’s

What is Cape Town?

aviation market as the United Kingdom of Great

Cape Town is comprised of two components:

Britain and Northern Ireland (“GBNI”) ratified

the Convention on International Interests in

Cape Town as of July 27, 2015. Such ratification

Mobile Equipment (the “Convention”), and

was extended to the territories of the Cayman

the Protocol on Matters Specific to Aircraft

Islands, Guernsey (one of the Channel Islands)

Equipment (the “Aircraft Protocol”). The

and Gibraltar (along with the United Kingdom

Convention governs transactions involving three

of Great Britain and Northern Ireland, the “UK”).

types of movable assets: aviation-related assets,

With Cape Town having become effective

rail assets and space assets. The Aircraft Protocol

across the UK on November 1, 2015, knowledge

is, as its name suggests, the provision that

of Cape Town’s basic principles and an

applies specifically to aviation-related assets.

Cape Town also allows contracting parties the freedom to agree upon the applicability of many Cape Town rights and remedies on a transaction-by-transaction basis. In some instances, contracting parties may exclude from their contracts certain rights and remedies that the relevant Contracting State chose to include in its jurisdiction by a specific Declaration.

United Kingdom Declarations When a country ratifies or accedes to Cape Town, it is required to make certain mandatory Declarations but may choose to make other optional Declarations as well. Some of the more significant Declarations made by the UK include The Convention was developed to address

earlier, non-registered Cape Town Interest in

the following:

concerns that many parties were hesitant to

the same asset. This “first to file” priority rule

offer financing for aviation, rail and space assets,

may be disregarded, however, if the relevant

Town will apply to the territories of the Cayman

which are easily and often moved from one

transaction parties register a subordination

Islands, Guernsey and Gibraltar. However, Cape

jurisdiction to another and therefore from one

agreement with the IR, pursuant to which the

Town will not be applied in the same manner

legal system to another, resulting in uncertainty

parties agree to alter their respective priorities.

across all UK jurisdictions.

Convention hoped to offer a uniform framework

Cape Town rights and remedies

and Guernsey are free to decide upon the

to eliminate or lessen such transaction risks.

In addition to setting up the framework to

governing law applicable to the terms of

register certain interests and determining the

their contract of sale, security agreement,

The International Registry

priority of those interests, Cape Town also

title reservation agreement and/or leasing

Cape Town serves two primary functions –

provides a set of negotiable rights and remedies

agreement, to which Cape Town is applicable (a

it establishes an International Registry for

relating to interests in Aircraft Objects. However,

“Cape Town Agreement”). This Declaration was

registering and prioritizing interests in aviation-

since the rights and remedies created by Cape

not made in respect of GBNI or Gibraltar.

related assets and it provides a set of negotiable

Town are negotiable, the rights and remedies

rights and remedies relating to interests in

available to contracting parties may vary widely

Town will not require leave of an appropriate

aviation-related assets.

from transaction to transaction, from country to

court unless such permission is expressly

• Contracting parties in the Cayman Islands

as to rights and remedies. The drafters of the

The International Registry (IR), a Web-based

• In addition to applying to GBNI, Cape

country and, depending on how a country

• Remedies available to a creditor under Cape

required by the terms of Cape Town – i.e., creditors are entitled to “self-help”

system, is the central location for registering

decides to adopt the Convention,

what Cape Town refers to as “Contracts of

across the various jurisdictions of

Sale” and “International Interests” (collectively,

a single country. For example,

• The courts of the Cayman

“Cape Town Interests”) in certain aviation-

Contracting States are given

Islands and Guernsey

related assets (airframes, aircraft engines (but

significant latitude to make

not propellers) and helicopters) referred to as

“Declarations” upon their

maximum cooperation

“Aircraft Objects.” Cape Town Interests include

ratification or accession

with foreign courts in

ownership interests, security interests, lease

to Cape Town. Such

matters of insolvency. This

interests and conditional sales interests.

Declarations determine

Declaration was not made

remedies.

are required to provide

which aspects of Cape

in respect of GBNI and

are straightforward. Generally, the first party

Town will be applicable

Gibraltar.

to register a Cape Town Interest in an Aircraft

in each of the Contracting

Object has priority with respect to that Aircraft

States and, as is the case

Object, regardless of whether the registering

with the UK, each of its

party has actual or constructive notice of an

territories.

Cape Town’s basic rules for registered interests

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• “Alternative A” under the Aircraft Protocol shall apply only in the Cayman Islands and Guernsey with

Aviation Law

respect to repossession remedies available in

Wales, the Court of Session in Scotland, the

connection with insolvency proceedings of a

High Court of Justice in Northern Ireland, the

lessee or debtor, and the “waiting period” with

Supreme Court of Gibraltar, the Grand Court

respect thereto shall be 60 calendar days. Under

of the Cayman Islands and the Royal Court of

this Declaration, the insolvent lessee/debtor must

Guernsey.

either cure all contract defaults (other than the insolvency itself) within the designated waiting

Conclusion

period or provide the creditor with possession of

While GBNI already has an established history

the Aircraft Object. During the waiting period,

of certainty in the realm of aircraft leasing and

the debtor must preserve the value of the

finance, the promulgation of Cape Town across

Aircraft Object. Because this Declaration does

provide interim relief within 10 business days

the UK demonstrates the continued movement

not apply to GBNI or Gibraltar, the insolvency

of the application for such relief. The courts

of the global market toward a recognized set

laws in existence in those jurisdictions prior to

of Guernsey shall also provide interim relief

of rules, rights and protections intended to

ratification will remain in effect.

within 10 business days of application therefor,

reduce uncertainty and risk levels for aircraft

• Relief pending final determination by a

except where a creditor seeks to lease or sell the

lenders and lessors. Furthermore, the ratification

court of appropriate jurisdiction as to whether

Aircraft Object, in which case such relief shall be

of Cape Town in a manner that extends to the

a default under a Cape Town Agreement

provided within 30 business days.

Cayman Islands should help to ensure that the

occurred, commonly referred to as “interim

• A debtor may issue and have filed with the

Cayman Islands remains an important player in

relief,” shall be available across the UK.

appropriate aircraft registry within the UK an

However, the additional rights of a creditor to

irrevocable deregistration and export request

lease or sell an Aircraft Object prior to any such

authorization (IDERA), making the “person”

and newsworthy. However, it is worth noting

final determination are limited to the Cayman

in whose favor such IDERA has been issued,

that the ratification documents deposited by

Islands and Guernsey only.

or its certified designee, the sole person that

the UK, including its specific “Declarations,”

may, upon a default, procure the deregistration

particularly with respect to the entry point

from the UK of an airframe and procure the

for the IR, will need to be digested fully by

export and physical transfer of an Aircraft Object

airlines, lessors and lenders and become part

out of the UK. The applicable administrative

of the negotiation, documentation and closing

authorities within the UK are also obligated to

procedures of their transactions for them to take

“expeditiously” cooperate with and assist in

advantage of the protections and benefits of

the exercise of the deregistration and export

Cape Town as effective in the UK. Q

• The courts of the Cayman Islands shall

CAPE TOWN – THE PARTICIPATING COUNTRIES Presently, 68 countries and the European Community have ratified or acceded to the Convention and the Aircraft Protocol (referred to as “Contracting States”): Afghanistan, Albania, Angola, Australia, Bahrain, Bangladesh, Belarus, Bhutan, Brazil, Burkina Faso, Cameroon, Canada, Cape Verde, China, Colombia, Congo, Costa Rica, Côte d’Ivoire, Cuba, Egypt, Ethiopia, Fiji, Gabon, India, Indonesia, Ireland, Jordan, Kazakhstan, Kenya, Kuwait, Latvia, Luxembourg, Madagascar, Malawi, Malaysia, Malta, Mexico, Moldova, Mongolia, Mozambique, Myanmar, Netherlands, New Zealand, Nigeria, Norway, Oman, Pakistan, Panama, Russian Federation, Rwanda, San Marino, Saudi Arabia, Senegal, Seychelles, Singapore, South Africa, Spain, Syrian Arab Republic, Tajikistan, Tanzania, Togo, Turkey, Ukraine, United Arab Emirates, United Kingdom, United States, Vietnam and Zimbabwe.

the global aviation market.

The UK’s ratification of Cape Town is exciting

remedies.

• Certain stated categories of nonconsensual

SGR’s Air Transport Industry Group represents

rights or interests shall have priority over a duly

a wide variety of clients in connection with

registered International Interest, whether inside

a broad spectrum of financing structures,

or outside of an insolvency proceeding. For

including sale and leasebacks, operating

example, an aircraft repairer with a possessory

leases, traditional and tax-driven leveraged

lien for services performed by it on, and value

leases, straight debt financings, pre-delivery

added by it to, the aircraft in its possession will

payment (PDP) financings, enhanced

have priority over a duly registered International

equipment trust financings and export

Interest. Lessors and lenders, take note that this

credit financings.

Declaration by the UK makes clear the rights of an intergovernmental organization or a private provider of public services, e.g., Eurocontrol, to arrest and detain an Aircraft Object for payment of services remain paramount.

• The following are the relevant UK courts where Cape Town related issues are to be heard: the High Court of Justice in England and

Marc Latman is a partner in SGR’s Corporate Practice and a member of the Firm’s Air Transportation Industry Group. mlatman@sgrlaw.com.

Robert Fuessler is an associate in SGR’s Corporate Practice. He focuses on the purchase, sale, leasing and financing of aircraft and aircraft engines. rfuessler@sgrlaw.com.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

15

INTRACOMPANY TRANSFEREES HOW TO MOVE KEY PERSONNEL INTO AND OUT OF THE U.S.

BY ROMY KAPOOR

O

Multinational companies often need to move key personnel from one international office to another for short-term assignments.

Here, we highlight the immigration issues involved with such global mobility needs verheard at an international

inspection process at the port of entry or

to enter the U.S. temporarily to continue to

manufacturing company’s

through site visits to multinational companies.

render his services to the same employer in its

Where time to be spent in a country is fairly

U.S. branch office, or with the U.S. subsidiary

management team meeting:

lengthy or where the duties to be performed

or affiliate of the foreign entity, also as an

our presence in the U.S. In addition to the

cross into that of productive work on behalf of

executive, manager or specialized knowledge

sales function there, we will add a limited

an entity in the host country, an employment

employee.

manufacturing function to perform final

visa or work permit may be required. The first

assembly of the components that have been

option to consider may be to send the employee

a period of three years, unless the U.S. entity is

manufactured at our parent facility in Germany.

as an intracompany transferee.

a “new office” that has been operating for less

“We’ve decided to expand

The L-1 petition can initially be approved for

than one year, in which case the L-1 will initially

We’ll need to send a team from Austria to install the assembly equipment and train the local work

Worldwide employment/visa options

be approved for one year. Extensions can be

force. It would also be a good idea to bring

The following is a summary of visa and work

granted in increments of two years. Managers

some of the more experienced local hires in the

permit options for employees being transferred

and executives (L-1A) are limited to seven

U.S. with supervisory and management potential

to the U.S. to work for a U.S. entity that is

years in the U.S., while specialized knowledge

to Austria for training and indoctrination.”

related to their employer abroad, as well as such

employees (L-1B) are limited to five years.

Companies in the U.S. and around the

options for U.S.-based employees who need

The U.S. entity may also seek to sponsor L-1

world traditionally have been able to send their

to be transferred to a related entity abroad.

individuals for U.S. permanent residence. For

employees abroad fairly easily and without much

Like the U.S., many countries throughout the

managers and executives, this can be quite

interaction with foreign immigration and labor

Americas, Europe and Asia offer employment

a quick process under the first-preference

departments by utilizing the business visitor

options for intracompany transferees with

immigrant visa category, with no labor

processes of a particular country. However,

attractive features that other employment visas

certification process required.

the potential exists for misuse of the business

in those countries don’t offer.

One key advantage of the L-1 category over other work visa categories is that spouses of L-1

visitor category in terms of how often and for how long the company is sending an employee

United States

principals, who are entitled to L-2 status, are

to a foreign country, and the duties to be

In the U.S., the L-1 visa classification

also able to obtain employment authorization

performed. Many countries, including the U.S.,

is designed for individuals who have been

in the U.S. Additionally, the L-1 category does

are more clearly defining permissible business

employed continuously for one year by an entity

not require the employer to show that the wage

visitor activities of foreign nationals and strictly

abroad as an executive, manager or specialized

offered to the beneficiary satisfies some arbitrary

enforcing them either in the immigration

knowledge employee. The individual now seeks

prevailing wage standard.

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

Immigration Law

United Kingdom

Canada

The United Kingdom offers Tier 2

Canada provides work permits to

status for intracompany transferees who have

Japan Japan provides for intracompany

intracompany transferees coming to work for

transferee “status of residence” for engineers

worked for the foreign entity for at least the

a related company in Canada if the foreign

or specialists in humanities or international

preceding 12 months and are now coming

national has worked for at least one year (within

services who have been working for at least

the preceding three years) for the foreign

the preceding one year overseas and are now

position as long-term staff (up to 60 months),

entity in an executive, senior management or

being transferred to a related Japanese entity.

short-term staff (up to 12 months), graduate

specialized knowledge position. The program is

The intracompany transferee must be paid a

to work for a related UK entity in a skilled

trainee or to participate in a skills transfer

similar to the U.S. L-1 visa. The wage offered to

salary that equals or exceeds the prevailing

program. The general Tier 2 category

the foreign worker must be consistent with his

wage for Japanese nationals performing

for temporary professional and skilled

level of expertise, and must meet or exceed the

comparable work. There is a separate business

prevailing wage for the occupation. However,

manager “status of residence.” Senior and

normally requires a showing that the offered

intracompany transferees entering Canada

mid-level executives and managers will fall under

salary meets or exceeds the prevailing wage for

pursuant to the North American Free Trade

this category rather than as an intracompany

the position. Additionally, the employer must

Agreement or some other free trade agreement

transferee, such that the work and salary

normally carry out a labor-market test for the

are not subject to this wage requirement. All

requirements do not apply.

position to determine whether there are any

intracompany transferees are exempt from the

qualified UK resident workers. This is typically

normally required labor-market testing.

workers includes a cap on admissions, and

an expensive and time-consuming process.

However, Tier 2 intracompany transferees are exempt from both the cap and labor-market

South Korea South Korea offers an intracompany

Mexico

transferee visa to “indispensable” professional

Intracompany transferees traveling to

workers who have worked for the company

testing, although there are some minimum

Mexico to work for a foreign company’s related

abroad for at least one year and are now

salary requirements.

entity for 180 days or less do not require work

sending the employee to a related company

authorization, even if placed on the payroll of

that is registered with the Korean government.

Germany

the Mexican company. If the transferee will

Indispensable professionals include executives,

Like the UK, Germany normally requires

remain on the sending company’s payroll, the

senior managers and specialists who possess

labor-market testing for its foreign national

employee may enter Mexico as a business visitor.

advance level proprietary experience and

temporary work force prior to the issuance

Intracompany transferees staying more than 180

knowledge essential to the company’s service.

of the necessary work and residence permits,

days require both a work permit and residence

but exempts intracompany transferees from

permit, unless they will remain on the sending

Work permit and visa options differ dramatically

this requirement, provided the German entity

company’s payroll, in which case only the

from country to country, as do the processing

periodically sends skilled employees to its foreign

residence permit is required.

requirements and timelines. It is advisable to contact an immigration professional well in

related entities.

France France offers a combined work and

China

advance of moving personnel internationally.

China has one of the most complex,

Careful immigration and visa compliance

multi-stage, multi-agency employment

planning can minimize problems and delays. Q

residence permit for “workers on assignment”

authorization processes in the world, involving

in two scenarios. The first is temporary assignees

local labor authorities, trade commissions,

With our knowledge and our contacts with

who will be sent to France to work at a branch

health authorities and public security authorities,

immigration professionals throughout

office, or at a French entity that is related to the

as well as the Chinese diplomatic post in the

the world, SGR’s Global Immigration and

overseas employer, but continue to be employed

foreign national’s home country, to apply for

Mobility Practice can provide the best

by the overseas employer. The second is those

the Z visa. Intracompany transferees go through

outcome for all parties.

temporary assignees who will be transferred

the same employment authorization and visa

from the overseas employer to work directly

processes. Senior executives may enter China on

for the related French entity. In either case, the

an M business visitor visa or an L tourist visa and

foreign worker must be paid at least one and a

convert their visa to an alien employment permit

half times the statutory minimum wage.

and residence permit after entry.

Romy Kapoor heads the Firm’s Global Immigration & Mobility Practice. He assists companies in the legal and efficient movement of their global talent across international borders. rkapoor@sgrlaw.com.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

17

ISRAEL SMALL COUNTRY, INNOVATIVE GIANT

Israel may be a tiny country, but it is a major force in technology, and research and development

BY JONATHAN MINNEN

18

BY GREG KIRSCH

TRUST THE LEADERS | Winter 2014 | SGRLAW.com

Israel and Innovation

THE STORY BEHIND SGR’S ISRAEL PRACTICE

I

srael has become a global technological and

The majority of the land area of this tiny country is

entrepreneurial powerhouse. The recent Bloomberg

desert. In the center of the country, where most of the

Innovation Index, an annual ranking of countries

population lives, is an area where the width of Israel is,

that measures performance in research and

according to one former governor and U.S. president,

development, technology education, patents and

smaller than the length of the driveways of many Texas

other marks of technological prowess, listed Israel at

ranches.

#5 in the world. South Korea, Germany and Finland

There are plenty of countries that are small, located

(which are also home to companies represented by

in stressful geographic areas, lack substantial natural

SGR) ranked first, third and fourth, respectively. The

resources or have other challenges. So what has made

U.S. ranked sixth. Digging into the details, Israel ranks

Israel so successful? It was not always this way. From

second in research and development, and fourth in

1979 to 1985, Israel had triple-digit annual inflation,

post-secondary education and research personnel. For

peaking at 444.8 percent in 1984. In that year, per

a number of years, Israel has ranked at or near the

capita GDP was under $12,000 annually. Even today,

top of foreign countries in terms of the number of

wages remain very modest, with the June 2015 data

companies listed on the Nasdaq.

showing the equivalent of $2,620 per month in gross

So, how did this little State of Israel, with its

income. Even so, housing prices in many parts of Israel

population of eight million people (by comparison,

rival Manhattan, and automobiles generally cost about

the population of the Atlanta metropolitan area is 6.1

twice the price of the same model in the U.S.

million), generate enough business to be of interest not only to SGR, but also to many of the world’s premier global companies?

Understanding the business success of Israel requires

Israel’s technological prowess – some say its “economic miracle” (in the view of Dan Senor and Saul Singer, authors of Start-up Nation) – came precisely because Israel and its citizens had no choice

a suspension of the traditional way of looking at

but to confront its challenges head-on. Learning to

things. Successful countries often have valuable natural

confront adversity was a matter of survival, and led

resources, substantial size, a strategic geographic

to a combination of attributes that are collectively

location, or some combination of these attributes. Until

unique. In Israel, one must achieve success with the

the discovery of natural gas deposits off of Israel’s coast

resources at one’s disposal, not the resources one

several years ago, which are still in the early stages of

would wish to have.

development, Israel had few valuable natural resources.

Trying and failing is not a source of embarrassment

Your authors – Jonathan Minnen, chair of SGR’s Corporate Practice, and Greg Kirsch, chair of the Firm’s Intellectual Property Practice – are both lateral partners, having moved our practices to SGR in 1999 and 2012, respectively. Among the factors that attracted us to SGR was the Firm’s willingness to think creatively and seek opportunities that would not be the norm for a law firm of its size and headquartered in the southeastern United States.

When Jonathan approached Firm management in 2000 about the idea of developing a practice area serving the U.S. legal needs of Israeli companies, there were concerns about its viability. Israel is really tiny and located in a turbulent part of the world. The Firm provided its unqualified support nonetheless.

Fast-forward 16 years and, enhanced by the addition of Greg’s patent practice for Israeli companies, SGR’s work in the U.S. for Israeli companies has grown into a substantial part of the firm’s International Practice. Our work touches nearly every practice area and our lawyers interface with our Israeli clients nearly every working day. We count a number of marquis Israeli companies among our clients, as well as a host of highly innovative earlystage companies and leading research universities.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

19

INTELLECTUAL PROPERTY & ISRAEL

BY GREG KIRSCH

Given Israel’s reputation as “the Start-up Nation,” it’s not surprising that Israeli companies and universities generate a significant amount of intellectual property (IP) – patents, trademarks, copyrights and trade secrets. Israel has the second highest number of startups of any country of the world, behind only the United States. Most are technology focused, and Israeli inventors consistently rank among the most patented in the world, both in numbers and per capita.

Given the impressive innovation being developed within Israel, companies worldwide routinely seek out Israeli companies to acquire. Many significant acquisitions have taken place in recent years.

However, would-be acquirers of Israeli companies need to be mindful of the legal environment both in Israel and the U.S. when the acquisition of IP is involved.

For example, the Israeli government provides a significant amount of funding to technology startups in Israel, through the government’s Office of the Chief Scientist (OCS). This type of funding comes with terms that are initially quite attractive for the startups – no grant of equity to the government, and a need to pay back the grant (with interest) only if the venture is successful.

Of course, these generous terms come with restrictions, including with respect to any IP that is generated as a result of the funding. In exchange for a grant, the government wants to encourage companies to keep the IP and any know-how within Israel, and to keep any associated manufacturing activity within Israel, if possible.

If an Israeli company that received a grant from the OCS wishes to transfer the resulting IP and/or know-how to a company outside of Israel, such as through an acquisition by a non-Israeli company, it must obtain permission from the OCS. This process typically involves repayment of the grant, and the payment of a penalty. While the specific grounds for obtaining permission from OCS can be complex, there are usually ways to mitigate the risks so as not to endanger the feasibility of an acquisition.

When the neighbors aren’t friendly, your country is only nine miles wide in some places and your back is against the sea, you learn several key things, which have become culturally ingrained for Israelis.

in Israel. Rather, it is looked upon as a learning opportunity, with the experience gained leading to a higher probability of future success. Thus, taking risks in order to achieve success is culturally accepted.

When the neighbors aren’t friendly, your country is only nine miles wide in some places and your back is against the sea, you learn several key things, which have become culturally ingrained for Israelis. Goals must be accomplished quickly. Innovation, including challenging the accepted norm, is essential. The ability to collaborate with one’s colleagues to accomplish a needed outcome can, quite literally, mean the difference between life and death.

In Israel, most adults, both men and women, serve a period of compulsory military service immediately after high school. After military service, Israelis take these experiences with them to the private sector – first in their university studies, and then in business. Many highly successful start-up companies were founded by those who served together in the Israeli military, including elite combat units and Unit 8200, which is Israel’s corollary to America’s National Security Agency.

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

Israel and Innovation

cellular telephone and many medical devices all have significant research roots in Israel.

Credit for developing the ubiquitous USB drive that we know today is generally given to innovators at the Israeli company M-Systems, which was purchased by Sandisk. Development of capsule endoscopy – the Fantastic Voyage-like swallowable pill that takes and transmits high-resolution images of the digestive tract – was developed by Given Imaging, now owned by Medtronic. Robotic parking garages, to resolve the parking issues in high-density/high-property-value areas, are being built in U.S. cities by Unitronics.

High-end manufactured quartz countertops are now being manufactured in the U.S. by Caesarstone.

High-performance fabric created by Tefron is found in our clothing. And a much-needed alternative to the dreaded preparation for the highly important colonoscopy examination will soon be available from the Israel/U.S. company HyGIeaCare. (SGR has been pleased to count Given Imaging, Unitronics, Caesarstone, Tefron and HyGIeaCare among its clients.)

In addition, many Israeli innovations are present in upgrades to U.S. Air Force fighters and Army equipment. For example, the Israeli company Elbit

U.S.–Israeli Economic Ties The benefits of the U.S.-Israel relationship have been very much a two-way street. A drive along a main highway leading north from Tel Aviv could easily confuse an American driver into thinking they were driving in Silicon Valley. In fact, the area has a nickname: “Silicon Wadi.” On building after building are the signs of major U.S. companies. Intel is Israel’s largest private sector employer, with close to 10,000 employees, and Israel is reputed to be the location of its largest R&D center outside of the United States.

Apple recently opened its first non-U.S. R&D center in Herziliya, and now has nearly 1,000 employees in the country. Multiple times a year, acquisitions of Israeli companies and/or the establishment of technology development centers or incubators are announced by the likes of not only Intel and Apple, but also Microsoft,

The development of Microsoft Windows, Intel computer chips, instant messaging, the cellular telephone and many medical devices all have significant research roots in Israel.

developed the helmet-mounted display system for the new F-35 Joint Strike Fighter, and Israel’s Plasan will be one of Oshkosh Corporation’s major subcontractors in the manufacture of the new light multi-purpose military vehicle, which will replace the famous Humvee for U.S. military forces.

Famed investor Warren Buffett has only invested in one country outside of the United States, and that is Israel. He had this to say when announcing that his firm, Berkshire Hathaway, had paid $2 billion for 20 percent of the stock of Israeli toolmaker Iscar (Berkshire Hathaway had previously purchased the other 80 percent): “Israel reminds me of the United States after its birth. … The determination, motivation, intelligence and initiative of its people are remarkable and extraordinary.” Q

Medtronic, Phillips, IBM, Cisco, Google, HP, Oracle, GE,

SGR looks forward to continuing to be of service to

Qualcomm, Motorola – and the list goes on.

Israeli companies and universities.

Similarly, very few Americans go through their day without benefiting from technology developed or enhanced in Israel. The development of Microsoft Windows, Intel computer chips, instant messaging, the

Jonathan Minnen is head of SGR’s Corporate Practice. jminnen@sgrlaw.com. Greg Kirsch is head of SGR’s Intellectual Property Practice. gkirsch@sgrlaw.com.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

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FOREIGN MANUFACTURERS

TRAPS FOR THE UNWARY

The legal complexities of selling and servicing machinery in the U.S.

F

BY MICHAEL KRAUS

BY VICKIE CHUNG

oreign manufacturers

installation (or repair service under warranty) at

States provides for two distinct levels of income

who sell industrial

the customer site.

taxation. First, gainful activities are subject to

machinery and

The installation cannot include construction

federal income taxation. In addition, each of

work, except for supervision or training of

the 50 states maintains its own tax regime, with

the U.S., if they provide

U.S. workers to perform construction. If the

most states levying income tax on a state-by-

installation and repair services

technician sent to the United States is not

state basis with often diverging tax laws and

to their U.S. customers, face

eligible under the Visa Waiver Program, a visitor’s

regulations. Furthermore, a few cities and

potentially unforeseen legal

visa (B visa) would be required. If the 90-day

municipalities (most notably, New York City) levy

consequences with regard to

time limit (or 180-day time limit plus possible

an additional, third level of income taxation.

visas, federal and state taxes,

extension under a B visa) is exceeded, or if any

and local licensing laws.

of the other criteria of the program are not met,

double-taxation treaties with the U.S., the

We discuss the steps foreign

work authorization has to be secured, typically

definition of maintaining a fixed place of

manufacturers should take to

in the form of an E visa, L visa or H visa. The

business, or “permanent establishment,” is

protect themselves and their

application process for those types of visa is more

provided under those treaties. Article V of the

employees.

complex, and assistance from an experienced

U.S.-German Income Tax Treaty provides that

immigration attorney is recommended.

maintaining a construction site in excess

equipment in

1

Do I need a visa?

of 12 months constitutes a “permanent

most European citizens, may travel as tourists or

2

on business under the U.S. Visa Waiver Program

particularly at the state level, of installation of

without any formal visa application, and only

equipment by a foreign manufacturer are not

registration under the Electronic System for

appreciated. Prevailing tax law in the United

Citizens of many foreign countries, including

Since most industrialized countries have

Tax issues

establishment,” which subjects the foreign

Frequently, the income tax consequences,

manufacturer to U.S. federal income taxation because it is deemed to maintain a branch.

However, even if the installation is performed in less than 12 months, many U.S. states

Travel Authorization (ESTA) is required. Under

mandate far narrower definitions of what

the program, a European executive may visit

constitutes “nexus,” i.e., maintaining sufficient

a corporate subsidiary or attend a trade fair.

business contacts, resulting in state income

Similarly, when specifically required by the

taxation. Under those provisions, even very short

purchase contract, technical experts who have

installation services, storing or using personal

to travel to the United States to install, service or

property such as tools and other items, or

repair equipment or machinery sold by a foreign

engaging in maintenance work may constitute

company to a U.S. buyer can travel under the

nexus and thus subject the unwary foreign

Visa Waiver Program.

manufacturer to state income taxation. Thus,

Travel for technicians and engineers installing foreign-made equipment in the United States is limited to a maximum of 90 days per stay and

state tax rules should be carefully reviewed prior to engaging in business activities.

Failure to file income tax returns when

has to be in performance of a contract of sale of

required can result in severe civil and even

foreign equipment to the United States requiring

criminal penalties.

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

Foreign Manufacturers Israel and Innovation

3

Who needs a contractor’s license?

licensing is a prerequisite to bringing a lawsuit.

Most states require a contractor’s license for

Some states, such as Virginia, consider a

commercial, industrial or residential construction

contract with an unlicensed contractor to be

projects. Some states only require licenses where

void and unenforceable. Additionally, in the

projects exceed a specified dollar amount.

event the contractor is sued for unlicensed work, legal defenses such as waiver, estoppel or

The requirement for a contractor’s license

quantum meruit may be unavailable.

applies to both individual and entity contractors.

Second, an unlicensed contractor may

For foreign manufacturers with U.S. subsidiaries, it is important that the proper entity is licensed.

be forced to return all payments received

For example, if the foreign parent company is

for completed work. This is true even if the

the party to the manufacturing contract, the

contractor fully disclosed that it was not licensed

foreign parent company must be licensed at the

and the quality of the work completed was

time the contract is entered into and the legal

perfect.

obligation is created. The foreign manufacturer should also ensure that two or more of its employees performing the work carry a contractor’s license, if the state licensing board so allows.

There can be very serious consequences for the failure to obtain a contractor’s license.

Finally, an unlicensed contractor may be liable for monetary fines and/or jail time. For example, in California, those who are found to be contracting without a license must appear before a Superior Court judge to answer misdemeanor charges that carry a potential

How to obtain a contractor’s license

sentence of up to six months in jail and/or a

Generally, contractors may obtain licenses

which seeks to protect consumers who may be

$5,000 fine in addition to an administrative fine

through a state licensing board. Nearly all of the

damaged as a result of defective construction or

of $200 to $15,000. If unlicensed contracting

states require applicants to be at least 18 years

other license-law violations. The bond does not

continues, the penalties become more severe: a

of age with a high school diploma or equivalent;

protect contractors from liability in the case

second offense results in a mandatory 90-day

provide proof of U.S. citizenship, legal residency

of an accident on the job. Therefore, contractors

jail sentence and fine of 20 percent of the

or lawful presence in the U.S.; provide

must carry liability and worker’s compensation

contract price or $5,000.

documentation of any other occupational license

coverage in each state where they do business.

Because of the serious nature of these

• In addition to these state requirements,

consequences, foreign manufacturers should

any citations, violations or liens resulting from

many counties and cities will require their own

ensure they are properly licensed in each state

previous construction work. If the applicant is a

business or occupation licenses. For example, in

and municipality in which they do business.

corporation, it must register with the Secretary

New York, except for asbestos abatement work,

of State to do business in the state.

all construction work is regulated at a local level.

the applicant holds in the state; and explain

• Most states also require license applicants

Holding a license in one state usually does

Conclusion The sale of industrial machinery and equipment

to take a written examination on construction

not grant a contractor the right to perform

into the U.S. raises a host of issues pertaining

law, business organization and the skills of their

construction in another state. Because licensing

to visas, taxation, and state and local licensure.

occupation. These exams may be difficult for

requirements vary from state to state, foreign

Foreign manufacturers wishing to sell such

foreign applicants, as they generally require a

manufacturers should consult the rules of the

products in the United States should consult

good command of the English language and ask

licensing board in the state in which they wish to

with competent legal counsel to ensure

technical and legal questions.

do business. In addition, foreign manufacturers

compliance with all laws applicable to the

should also be aware of any county or city

provision of installation and repair services. Q

• Applicants may also have to prove financial ability to operate a construction business. Most

licensing requirements that apply.

states will also require proof of on-the-job experience, and may request letters of reference from previous employers and customers.

The consequences of failing to obtain a contractor’s license

• The taxing authority in each state has the

There are very serious consequences for the

right to set any conditions for doing business in

failure to obtain a contractor’s license. First,

that state, and many states will require licensed

an unlicensed contractor will be unable to sue

contractors to post a “state license bond,”

for payment in many states because proof of

Michael Kraus is a partner and the head of SGR’s International Practice. He works almost exclusively in the field of international business transactions. mkraus@sgrlaw.com.

Vickie Chung is an associate in SGR’s Litigation and Zoning, Planning and Land Use practices. vchung@sgrlaw.com.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

23

illness and keeps the family unit together in

SGR CLIENT PROFILE

HOME LOAN GUARANTEE COMPANY NPC

formal housing. As an indirect benefit of early detection and of appropriate treatment, and by virtue of parents surviving longer and living in formal housing, children in affected families have the opportunity to complete their education, thus breaking the potential spiral of poverty.

BY PREF RAMIREZ

The South African insurance firm, created to provide loans for low-income borrowers, has helped fuel economic growth

H

Housing for HIV Foundation Providing HIV and AIDS treatment is a long-term commitment that simply cannot be left to the vagaries of hand-outs and donations. It was, therefore, necessary to find a way to ensure a sustainable source of income to enable the HIV/AIDS testing, counseling and treatment

ome Loan Guarantee Company NPC

appropriate treatment for affected borrowers. In

program managed by H4H (the “HIV Program”)

(HLGC) was established in 1989 in a

the event of default due to AIDS incapacitation,

to operate for the lifetime of the borrower, and

South Africa plagued by civil unrest,

the borrower commits to a treatment program,

to facilitate and pay for treatment where it is not

mayhem and destruction. Born in a

and HLGC’s cover to the lender enables the

otherwise available from government clinics or

time of chaos and upheaval, the company was

borrower to remain in his or her home without

medical insurance.

formed specifically to take risk on home loans to

risk of eviction and without incurring additional

ensure that lenders made financing available to

interest or costs on the loan.

lower-income, but creditworthy, borrowers.

H4H also introduced home-based testing,

In 2008, Housing for HIV Foundation (“H4H Foundation”) was created as a 501(c) (3) foundation in the United States specifically

where borrowers are tested in the privacy

to raise funds for the HIV Program. Through

Housing for HIV

of their own homes by H4H nurses. Taking

Overseas Private Investment Corporation (OPIC),

During the 1990’s, the risk of HIV/AIDS in South

testing into homes rather than having people

JPMorgan Chase London and Structured

Africa – the country with the highest prevalence

stand in line, often for a long time in a less

Solutions, a structured finance transaction

in the world – was a factor that impacted banks’

than welcoming environment, brings care and

was successfully concluded utilizing financial

willingness to lend for lower-income housing

compassion to what can be a difficult and

market instruments. The transaction netted

purposes. HLGC determined that risk on loans to

emotional process. On a more practical level,

seed funding of $33 million (US) to the

HIV/AIDS-affected individuals could be managed

borrowers know their status immediately, thus

H4H Foundation for the HIV Program while

in one of two ways: an increase in premiums,

eliminating unnecessary and detrimental waiting

simultaneously producing market-driven returns

or treatment. HLGC opted for treatment and

time between testing, results and care.

to the investors.

established Housing for HIV (“H4H”) to manage

Linking voluntary care and treatment with

The income received from the structure was

the HIV and AIDS risk for HLGC by facilitating

sustainable home ownership effectively

donated to H4H by H4H Foundation. The H4H

access to voluntary counseling, testing and

monetizes the benefits of treating AIDS-related

Foundation is a precedent for philanthropic

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

Client Profile

Linking voluntary care and treatment and sustainable home ownership monetizes the benefits of treating AIDS-related illness and keeps the family unit together in formal housing.

• funding to small projects where the

licensed in South Africa and is currently being

beneficiaries hardly have sufficient resources to

implemented by a nurses association, and a

maintain their programs, let alone raise funds

taxi association. For example, taxi owners are

• insurance-based program risk sharing

responsible for the upkeep of their vehicles, but

with lenders who make loans to creditworthy

money given to the taxi drivers for maintenance

borrowers in the lower-income micro-, small-

is often spent by the drivers on something else.

and medium-enterprises (MSME) sector.

The Yomane platform ends all that, as the owner

A challenge in implementing such programs

prefunds the card, which can only be utilized at

is ensuring that funds are properly managed.

merchants that have signed on to the network

Experience has shown that where lower-income

and only for the services agreed to. Ngena is also

individuals suddenly have access to a lump sum

in conversations with a governmental agency

institutions to utilize well-secured debt to

of money from, for instance, a grant to make

in Europe about a benefits card, to ensure that

acquire sophisticated financial products in

improvements to a house to make it disabled

funds can only be used within the jurisdiction

order to create a sustainable income stream

friendly, or a loan to buy a sewing machine to

and, where required, for specific purposes. It

for social benefit.

start a dress-making business, the challenge is

is also exploring the feasibility of establishing a

to overcome the risk that the funds may be used

Yomane network in Brazil.

Ngena Foundation

for other financial obligations. To this end, and

With all of its originally intended programs

as a first step, Yomane was created.

Future potential uses for the Yomane platform include a mechanism for agricultural loans in rural Africa, and the ability to send money

up and running, HLGC decided to expand the Foundation’s mandate and seek other areas

Yomane

“home” from the cities to areas where there is

where it might have a social impact. Hence,

Ngena established Access Gateway Technology

limited banking access. Potential lenders who

Housing for HIV Foundation became Ngena

Solutions Inc., which has acquired and

were uncomfortable with risk can now enter

Foundation (“n-geh-na”) – “ngena” being

developed a payments platform called Yomane

into the market with confidence. Q

the Sesotho word for “access.” Ngena is now

to facilitate access to basic banking services

looking at facilitating access to life-changing

for individuals who do not have access to

Pref Ramirez represented Housing for HIV

financial services, such as:

the banking system or are “underbanked.”

Foundation on the structured loan facility

Using “closed loop,” as opposed to Europay,

involving OPIC and JPMorgan Chase London

MasterCard and VISA (EMV) processing, the

described above, which resulted in funding

Yomane platform facilitates a personal online

for the HIV Program. He currently is assisting

account via a prefunded card and/or a mobile

Ngena to establish the Yomane payments

telephone application, with functionality similar

network in Brazil.

• financing for creditworthy, lower-income individuals to build their own homes • micro-enterprise financing to allow small businesses to develop and grow • financial guarantees to banks for the portion of the construction financing that would have

to the banking apps offered by banks – all at

been covered by the buyer deposit in the lower-

no charge to the individual. Yomane has a

income sector

controlled gateway, ensuring that all funds reach

• banking services to lower- and middleincome people in under-resourced communities

their intended destination.

The Yomane network has been tested and

Pref Ramirez is a partner in SGR’s Corporate and International practices. He focuses on leveraged finance transactions, acquisitions and commercial transactions. pramirez@sgrlaw.com.

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

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SGR PARTNERS WITH

CRISTO REY ATLANTA JESUIT HIGH SCHOOL

SGR attorneys help coach and mentor the next generation

H

igh school students walking the halls of

of 30 Catholic, college preparatory high schools

to realize that vision.Through this innovative

the Atlanta office of Smith, Gambrell &

for underrepresented urban youth. Their goal

program, students work five full days a month at

Russell have been a welcome addition

is to change the face of urban education in the

top local companies. In fact, some of the other

United States.

CWSP partners are clients of SGR.

to the Firm. SGR has partnered with Cristo Rey Atlanta Jesuit High School’s Corporate Work

The objective of the CWSP is to help students

“SGR is proud to be a job partner with Cristo

Study Program (CWSP) for the 2015/16 school

envision a future that includes a college degree

Rey,” said Steve Forte, SGR’s Managing Partner.

year. Cristo Rey High School is part of the

and a successful professional career, and to equip

“This program follows a nationally proven model

national Cristo Rey Network, which is comprised

them with the knowledge and skills needed

that helps young people in our community

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TRUST THE LEADERS | Winter 2016 | SGRLAW.com

Finish Line

Pictured left with SGR’s Cristo Rey students are (from left to right) Director of Marketing and Business Development Lee Watts, associate Harrison Anthony and legal assistant Cheryl Walker.

WHAT THE STUDENTS SAY ABOUT THE PROGRAM Mariana Rodriguez

achieve success during their high school years

“I enjoy working at SGR and meeting new people. I know that this experience will help me in the future.”

that will carry them through college and into their professional careers. Our lawyers and staff are excited to participate in the personal development of the Cristo Rey students.”

The earnings from their work pays for a large percentage of each student’s tuition costs, giving them access to a rigorous, quality college preparatory education that otherwise would be too expensive. Cristo Rey students also gain valuable real-world job skills, contacts and experience through this program, and go on to college in record numbers, in large part because of their early exposure to the working world.

As freshmen, student workers are introduced to the basic skills needed to participate in entry-level office jobs. Students then increase their understanding of general office culture,

The Cristo Rey students gain valuable real-world job skills, contacts and experience through this program, and go on to college in record numbers.

professional skills and daily responsibilities with their supervisor and colleagues as sophomore students. When students reach their junior and

Monday is the one day of the week in which

senior years, job placement begins to mirror a

students rotate their attendance at the Firm.

college-level internship.

Attorneys meet with each student over breakfast and discuss various topics, including work,

How the Program Works

school, extracurricular activities and sports. It has

Four students have been assigned to SGR. Each

been a great experience for both the students

workday, a different student arrives at the Firm

and the attorneys.

and reports to his or her assigned department.

The Firm also taught a Digital Citizenship

Assignments range from filing, organizing and

class for the Business Institute at Cristo Rey.

scanning documents, to assisting our information

“It was exciting speaking to 46 energetic and

technology department with programming

eager teenagers about social media,” says Lee

computers and phones, to creating electronic

Watts, SGR’s Director of Marketing and Business

surveys and designing invitations.

Development. “Although they wanted to talk

At SGR, the students are exposed to attorneys

about Instagram and Snapchat, I wanted to

as well as to the administrative side of a law

make sure they understood responsible uses

firm including marketing, recruiting, accounting,

of the Internet and social media. It was fun.”

information technology, records and the library.

In addition, SGR’s Kristen Lewis has committed

The students have also added to the Firm and given another glimpse of innovation and fresh ideas.“It has been a really fun experience so far,”

to mentoring a freshman at Cristo Rey for the student’s four years of high school.

We are delighted to have our four Cristo Rey

says Zaire, a sophomore at Cristo Rey. “I love

students at SGR. It has been wonderful to get to

learning new things.”

know them, see them learn new skills and have

The Firm has also adopted Mentoring Monday.

Zaire Williamson “Smith, Gambrell, and Russell helps provide me a better opportunity to reach out into the real world and explore my options.”

Julia Sanchez “This has been a great opportunity to learn more about a different field and how things work in a law firm.”

Kondarius Lindsey “I like working at the law firm because I can learn from successful people and also am inspired to do the right thing.”

WHAT SGR SAYS ABOUT ITS NEW STUDENTS Lee Watts Director of Marketing and Business Development

“It is a pleasure and a privilege to host the four students from Cristo Rey Atlanta Jesuit High School. The program is mutually beneficial and we are delighted to continue to be involved.”

them offer interesting and helpful ideas. Q

TRUST THE LEADERS | Winter 2016 | SGRLAW.com

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Trust the Leaders is printed on recycled paper